2018 (4) TMI 707

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....ssues involved in the Revenue's Appeals as well as Assessee's Cross Objection are identical, hence, the same are being consolidated with this common order for the sake of convenience, by dealing with Revenue's Appeal & Assessee's Cross Objection for AY 2007-08. 2. The grounds raised in the revenue's appeal for assessment year 2007-08 read as under:- 1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition amounting to Rs. 2,44,90,263/- on account of unabsorbed depreciation claimed for AY 1997-98. 2. The appellant craves leaves for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of....

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....is merely based on change of opinion and same being after expiry of four years, there is no justification for assuming jurisdiction in the absence of any omission or failure on the part of the assessee in disclosure of requisite information in the context of proviso to sec. 147. Revenue's Appeal (AY 2007-08) 6. The brief facts of the case are that assessee filed its return of income declaring Nil income on 31.10.2007. In the computation of income the company has set off total income of Rs. 2,18,51,939/- against the unabsorbed depreciation of earlier years. The assessment order u/s 143(3) of the I.T. Act was passed on 24.12.2009 at an additional income of Rs. 26,3.8,324/- which was also set off against the brought forward losses of the....

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.... u/s. 143(2) of the Act was also issued on 22.3.2013. The Senior Manager (Finance) of the Company attended the assessment proceedings from time to time and made the submissions. The submission made by the assessee has been considered on facts and merits of the case. The AO observed that the unabsorbed depreciation for AY 1997-98 could be carry forward upto a maximum period of 8 years from the year in which it was first computed and this period expired in 2005-06 and hence, cannot be allowed in AY 2006-07 onwards. Therefore, the setting off unabsorbed depreciation of Rs. 2,44,90,263/- was withdrawn and accordingly, the income of the assessee was assessed at Rs. 1,47,50,530/- vide order dated 143(3)/147/250 of the Income Tax Act, 1961. Agains....

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....2 of the I.T. Act to be c/f for indefinite period as judicially pronounced by the Hon'ble Gujarat High Court in the case of M/s General Motors India Pvt. Ltd. vs. DCIT(2012) 25 taxmann.com 364/ 354 ITR 244 (Guj) wherein, the Court has held that any unabsorbed depreciation available to an assessee on the 1st day of April, 2002 (the assessment year 2002-03), will be dealt with in accordance with the provisions of section 32(2) as amended by the Finance Act, 2001. And once Circular No. 14 of 2001 of CBDT clarified that the restriction of eight years for carry forward and set off of unabsorbed depreciation had been dispense with, the unabsorbed depreciation from the assessment year 1997-98 upto the assessment year 2001-02 got carried forward to....